Annual report pursuant to section 13 and 15(d)

Employee Benefits Plans

v2.3.0.11
Employee Benefits Plans
 12 Months Ended
Sep. 30, 2011
Employee Benefits Plans [Abstract]  
Employee Benefits Plans

Note 14. Employee Benefits Plans

Management Security Plan

The management security plan ("MSP") is a nonqualified noncontributory defined supplemental deferred retirement benefits plan for a select group of management personnel. The MSP plan provides a fixed supplemental retirement benefit for 180 months certain. The MSP is frozen; no new participants are being added and no benefit increases are being granted. The MSP benefit expense and the projected management security plan benefit obligation are determined using assumptions as of the end of the year. The weighted-average discount rate used was 4.5% in 2011 and 4.8% in 2010. Actuarial gains or losses are recognized when incurred, and therefore, the end of year benefit obligation is the same as the accrued benefit costs recognized in the consolidated balance sheet.

The amount of MSP benefit expense charged to costs and expenses was as follows:

 

In thousands

    2011      2010      2009  

Service cost

    $ 233       $ 265       $ 277   

Interest cost

      181         186         256   

Recognized actuarial loss (gain)

      —           —           —     

Recognized actuarial loss adjustment

      66         102         69   
  

 

 

     

 

 

     

 

 

  

Total

    $ 480       $ 553       $ 602   
  

 

 

     

 

 

     

 

 

  

The following provides a reconciliation of the MSP benefit obligation.

 

In thousands

    2011     2010  

Change in projected benefit obligation

     

Benefit obligation at beginning of year

    $ 3,792      $ 3,532   

Service cost

      233        265   

Interest cost

      181        186   

Recognized actuarial loss (gain)

        —   

Recognized actuarial loss adjustment

      66        102   

Benefits paid

      (302 )      (293 ) 
  

 

 

    

 

 

  

Benefit obligation at end of year

    $ 3,970      $ 3,792   
  

 

 

    

 

 

  

Funded status at end of year

    $ (3,970 )    $ (3,792 ) 

The MSP is unfunded and benefits are paid as they become due. The estimated future benefit payments under the plans for each of the five succeeding years are approximately $303,000, $303,000 $342,000, $346,000 and $351,000 and for the five-year period thereafter an aggregate of $2.3 million.

Profit Sharing and 401(k)

The Company maintains a 401(k) employee savings plan for eligible employees, which provides for a 2% matching contribution on employee payroll deferrals. Vesting of the Company's matching contributions begins after two (2) years of service with the Company at which time an employee becomes 20% vested. Employees become fully vested after six years of employment. The Company's contribution to the plan was approximately $59 thousand, $61 thousand and $100 thousand, for the fiscal years 2011, 2010 and 2009, respectively.

The Profit Sharing Plan ("Plan") is fully funded by contributions from the Company. Contributions to the Plan are discretionary and determined annually by the Company's Board of Directors. Contributions to employee accounts are based on the participant's compensation. The Company's contribution to the Profit Sharing Plan was $162 thousand for the year ended September 30, 2011. No contributions to the Profit Sharing Plan were made in fiscal 2010 or 2009.